By Karen Ocamb

Gov. Arnold Schwarzenegger is in trouble with Republican activists who threaten to withdraw support for this re-election bid if he doesn't dismiss his openly gay chief of staff, Democrat Susan P. Kennedy, the Los Angles Times reports.

"We've gotten to the point where we've just had it with the guy," Corona del Mar attorney Michael Schroeder, a former chairman of the California Republican Party, told the Times. "It's become clear that he's no longer pursuing a Republican agenda."

"I know who he is today. I have no idea who he will be tomorrow," said Simi Valley conservative activist Steve Frank," and we need some predictability as to which Arnold Schwarzenegger is governor."

The threatened revolt comes one month after California GOP Chairman Duf Sundheim met with Schwarzenegger and other GOP leaders and declared: "The Susan Kennedy issue is over." Now he's not so sure. "There have been some concerns expressed, and we're in the process of engaging in a dialogue with regard to those concerns," Sundheim told the Times. "It's not unprecedented in the history of our party."

The disenchanted activists plan to organize a coalition of other GOP critics and present a resolution at the California Republican Party convention in San Jose scheduled for Feb. 24-26. The resolution is expected to give the governor an ultimatum, the Times reports: Either fire Kennedy by March 15 or lose the party's endorsement.

Kennedy is at the top of a long list of criticisms, including Schwarzenegger's outreach to Democrats, his apology for the special election, and most importantly, his intention to borrow $68 billion for his huge Strategic Growth public works plan.

"This is a phenomenal amount of debt to accrue, and there are other ways to solve these problems," said L.A. County Republican Party Chair Linda Boyd after meeting with Schwarzenegger, Kennedy and other GOP leaders to discuss the public works project.

Schwarzenegger does not seem to be overly concerned by the threats, probably because it would hurt fund raising for the state party and legislative races. "We feel very confident that the Republican Party, in the end, will endorse Arnold Schwarzenegger," said Adam Mendelsohn, who replaced Rob Stutzman (of Prop. 22 fame) as the governor's new communications director.

Schwarzenegger's $125.6 billion budget proposal, presented on Jan. 10, also received mixed reviews. Slated for the fiscal year starting July 1, the governor said the proposal "continues California on the path toward fiscal responsibility and economic recovery" by using unexpected new tax revenue of $7 billion to pay down some of the state's debt and increasing school funding. He also proposed about a $150 million decrease for welfare services, and an additional $100 million being retrieved from money the state already gave counties for welfare programs, according to the Sacramento Bee.

The governor's budget also included an increase of $1.2 billion for health and human services, but the increase is less than the $2.2 billion raise such programs received last year.

Among those not pleased with Schwarzenegger's proposed budget was independent legislative analyst Elizabeth Hill who said the budget "moves the state in the wrong direction" by increasing spending instead of paying off existing debt, according to the Bee.

Among those pleased with the proposal were AIDS Healthcare Foundation and AIDS Project Los Angeles, which both applauded the increase in the state's AIDS Drug Assistance Program (ADAP) program but noted other concerns. "The budget recommends $409.4 million for HIV treatment and prevention programs, with approximately $174.9 million coming from the state's general fund," reports APLA. According to budget documents, the allocation represents a total increase of $24 million for the State Office of AIDS programs -- an estimated 6.2 percent above the revised 2005-06 budget. Of the total allocation, 72 percent -- or some $296.4 million -- will go to the state's ADAP. California's ADAP is estimated to serve approximately 31,586 clients during the next fiscal year, a 4 percent increase over this year.

"There are now more people than ever living with HIV/AIDS in California and across the country. Now is the time to redouble our efforts to keep this epidemic from spiraling out of control." said APLA Executive Director Craig E. Thompson. "The administration and the Office of AIDS should be commended for thinking strategically in this budget, especially at a time when many low-income people with HIV/AIDS and other disabilities are struggling with the new Medicare Part D drug plan. We must ensure that every Californian with HIV/AIDS gets the drugs they need. This budget moves us in that direction."

"We applaud Gov. Schwarzenegger for realizing the importance of California's AIDS Drug Assistance Program to the health and well-being of many low-income Californians living with HIV/AIDS, and thank him for the $28 million of additional funding for ADAP in this year's budget. More than 31,000 Californians will now benefit from this life-saving program. However, we also now vow to work together with other AIDS advocates and government officials throughout California to ensure that low-income Californians who may be affected by the complicated new Medicare Part D prescription drug program do not fall out of the safety net of AIDS treatment as a result of unexpected or excessive expenses or co-payments," said Michael Weinstein, president of AIDS Healthcare Foundation.

On Jan. 19, Schwarzenegger met with U.S. Health and Human Services Secretary Michael Leavitt to try to get assurances that California will be repaid the emergency money it is spending to cover Medicare Part D prescription drug costs while the government fixes the computer glitches and other problems linked to the new programs. Many of the poor, disabled, and seniors were automatically transferred into the program Jan. 1 but some pharmacies have not been able to access their records on the new computer database.

On Jan. 20 Schwarzenegger signed AB 132 by Assembly Speaker Fabian Nuñez (D-Los Angeles) with bi-partisan co-authors to ensure Californians unable to obtain necessary, life-saving medications due to problems at the federal level transitioning them to Medicare prescription drug plans have access to the necessary prescription drugs.

"The federal government is working to find solutions to these problems but right now one million Californians are at risk and need our help," Schwarzenegger said in a statement. "This is a federal program and it is the responsibility and obligation of the federal government to reimburse California for 100 percent of the cost."

Meanwhile, three Equality California-sponsored LGBT bills have passed through subcommittees and are now headed to the Assembly floor for votes.

The Gwen Araujo Justice for Victims Act, AB1160, authored by Mountain View Assemblymember Sally Lieber (D-Mountain View), amends jury instructions to prohibit the use of the so-called "gay panic" defense, such as that used in the murder trials of the men who killed 15-year-old transgender Gwen Araujo.

The Code of Campaign Practices, AB 1207, by San Francisco Assemblymember Leland Yee, is the re-introduction of a similar bill vetoed last year by Schwarzenegger. The bill adds sexual orientation and gender identity to the slew of protected groups named in the voluntary Code of Fair Campaign Practices pledge. Signing the pledge means the candidate or campaign is prohibited from using anti-LGBT bias for political gain.

The Safe Place to Learn Act, AB 606, by Van Nuys Assemblymember Lloyd Levine, ran into unexpected opposition before the Education committee from the California Teachers Association, which opposed what they believed was a "mandate" in teacher training. After some advice from Committee chair and open Los Angeles lesbian Assemblymember Jackie Goldberg, the bill was amended to clarify that the bill actually only ensures that already mandated anti-LGBT harassment training would be enforced.

"In the first month of the new legislative session, we already have three EQCA-sponsored LGBT rights bills that made it through committee and are heading to the floor of the Assembly," Geoff Kors, executive director of Equality California, told IN. "With the focus on LGBT youth and hate violence, there is a great deal of hope for the addition of rights being granted to our community in 2006."

For more on the bills, go to www.eqca.org.